Lakeland OKs retire-rehire policy

Lakeland Community College's Board of Trustees passed a retire-rehire policy at Thursday's meeting, but not without some contention.

The program allows employees who are eligible for retirement to retire from the district for up to two months, and then come back to work with 10 percent to 20 percent reduction in salary.

Board members agree the move will have immediate cost benefits for the school, though some believe the indirect and long-term costs might hurt taxpayers, future students and Lakeland in the long run.

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"I think this could mean unnecessary future millage for taxpayers and putting students at potential risk for higher tuition and fees," said Trustee Paul F. Vanek, who was appointed to the board on Tuesday.

Vanek explained that the policy could backfire on the college, which is working with decreased government funding, because it could lead to wage disputes with other employees who might also want an increase in pay.

President Morris Beverage said both pension systems that represent Lakeland staff -- the School Employees Retirement System and State Teachers Retirement System -- have no official policy on retire-rehire issues.

Vanek requested that the board table the issue to give the administration time to further examine how the policy could financially affect the college.

"It doesn't seem to pencil out to me," he said.

The board voted against tabling the item and approved the policy by a 7-2 vote. Vanek and Gerard J. Reis cast the dissenting votes.

Board Chair David A. Kalina said he understood the new members' hesitance, but believes the policy is necessary for Lakeland to save money and preserve the quality of its teaching staff.

"These are people that could retire today and they could get rehired somewhere else," Kalina said. "I think that would hurt this institution."

"If we can cut our costs and maintain quality, I think that's what our job is."

Beverage said the program is expected to save the college about $400,000, and possibly as much as $500,000, annually.

Kalina said the savings will help Lakeland, which has also made personnel cuts and has postponed refilling some open positions.

"This is only one piece of the puzzle," he said.

Beverage said about 92 employees are eligible for the voluntary program and many, including himself, have expressed an interest in utilizing it.

Employees who participate will be able to start collecting funds from their pension, although upon rehire, they would not be able to earn any more.